Bitcoin (BTC), the leading crypto, is grappling with challenges after failing to close above the crucial $105,000 resistance level. This price point has acted as a ceiling for BTC, preventing further upward movement.
The situation worsened as long-term holders (LTHs) opted to liquidate their positions, adding to selling pressure and pushing the price lower.
Bitcoin Investors Lose Patience
Recent data indicates a sharp uptick in Bitcoin’s Liveliness, a metric that tracks the activity of long-term holders. This spike suggests that many LTHs have sold their holdings over the past few days. Supporting this observation is the shift in LTH balances and a rise in overall Coin Days Destroyed, signaling significant movement of previously dormant BTC.
Since LTHs are often seen as the backbone of Bitcoin’s stability, their selling has historically resulted in bearish outcomes. This trend has played out over the weekend and into today, contributing to the ongoing price decline.
Despite the downturn, Bitcoin’s macro momentum suggests room for recovery. The Network Value to Transaction (NVT) Signal, a key valuation indicator, is currently at a low. This points to Bitcoin being undervalued compared to its transaction activity, hinting at the potential for future growth.
While the NVT signal provides a positive outlook, broader market cues will need to align for BTC to regain strength. Investors are not explicitly bearish at the moment, suggesting that sentiment could improve quickly if supportive conditions arise, such as increased buying activity or favorable economic developments.
BTC Price Prediction: Preventing Losses
Bitcoin’s price has fallen by 3.88% over the last 24 hours, bringing it to $100,682. This drop was primarily driven by LTH liquidations and BTC’s inability to close above the $105,000 resistance level, reinforcing bearish sentiment in the short term.
The next key support lies at $100,000, a critical psychological and technical level. BTC is likely to bounce off this support or settle here temporarily. However, losing this level could send the cryptocurrency down to $95,668, amplifying losses and deepening bearish pressure.
Conversely, if broader market conditions improve and Bitcoin reclaims $105,000 as support, the bearish outlook will be invalidated. In such a scenario, BTC could push toward its all-time high (ATH) of $109,699, reinvigorating investor confidence and paving the way for a new rally.
Disclaimer
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